Population ageing and the labour market: Some insights from Australia

Abstract

This paper summarises the major dimensions of current and impending ageing in Australia and its impact on the workforce. Australia has a more marked “post war baby boom” effect than most OECD countries with baby boomers making up 42 percent of the current workforce. The baby boomer effect is exacerbated in particular sectors of the labour market and in particular regions and cities. The Australian government has a strategy for coping with the impacts of ageing involving initiatives involving the three “Ps” – Population, Participation and Productivity – all of which relate to policies and programs involving the workforce. This presentation outlines some of the initiatives which have been put in place and are being considered. Each of the three Ps is considered in turn. It is suggested that too often workforce interventions are considered only from a narrow numbers perspective when issues such as health, cohort characteristics, training, retraining and workplace organisation need also to be carefully considered. It is also argued that government policy initiatives are only part of what is needed and that substantial cultural change on the part of employers and other key stakeholders are also required.